From GHC10,560 per tonne to GHC12,800.00 per tonne, the government has increased the producer price of cocoa by 21% for the 2022/2023 season.
A net FOB value of 89.99% is reflected in the producer price.
What is the FOB Value/Price?
FOB value/price stands for Free On Board value/price. The FOB (Free On Board) price refers to the cost of products or services sold to a foreign buyer at the border of the country doing the exporting. This figure takes into account the retail value of the product or service, the cost of transporting it to the frontier, and the value of any applicable taxes minus any applicable subsidies.
Effect of Change
As of the 14th of October, 2022, this sum will be in effect and will translate to GH800 per bag of 64 kg gross weight.
However, even after the 21% hike, the price is still less than that of the neighboring Ivory Coast, where a record-breaking cocoa producer on September 30 set its price at 900 CFA francs ($1.36) per kilogram. This raises the possibility that cocoa will be smuggled across the border and sold for a profit.
The Minister for Food and Agriculture stated via a press release on Wednesday, 5th October that “The 21% rise in the producer price of cocoa is a testament to Government’s resolve to ensure farmers earn a decent income and make cocoa farming lucrative. Government will continue to implement initiatives to build a robust, resilient and sustainable cocoa industry where cocoa farmers and their communities will thrive.
“To ensure a decent standard of living for Ghanaian cocoa farmers after retirement, Government will from November 2022 move from the pilot phase to the implementation phase of the Cocoa Farmer’s pension scheme.
“The Scheme remains an unprecedented achievement under His Excellency Nana Addo Danquah Akufo Addo”.
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